By Mandy Mancini
A second home is a one-unit property you use yourself for part of the year and control. You can rent it occasionally, but lenders won't count that income.
An investment property is bought mainly to rent. Fannie Mae requires at least 15 percent down instead of 10, and lenders can now count short-term rental income to help you qualify.
Picture the usual plan for a Hocking Hills cabin. You take fall weekends and a week around Christmas, and guests cover a good share of the mortgage the rest of the year. That plan sits on the line between a second home and an investment property, and where you land changes your down payment, how you qualify, and who controls the booking calendar.
Our team works on every side of this market, with buyers, sellers, investors, and new construction, including Cave Creek, a 22-site luxury cabin development near Old Man's Cave.
We consider construction costs, rental potential, and resale value for every cabin we touch, and classification affects all three.
Three different authorities answer the second-home question, and they use different rules. Your lender has one definition, the IRS has another, and Hocking County mostly cares whether the cabin is rented at all.
How lenders decide what your cabin is
Most conventional lenders follow Fannie Mae or Freddie Mac rules. Under Fannie Mae's Selling Guide, a second home must be occupied by you for some portion of the year, must be a one-unit home suitable for year-round occupancy, and must stay under your exclusive control.
It also can't be rental property or a timeshare, though a lender can still approve it as a second home if it generates rental income, as long as you don't use that income to qualify. An investment property is simply a home you own but don't occupy.
The year-round requirement deserves extra attention, and it's another reason the septic, water, and road access checks in our guide to buying a cabin in Ohio should come before you apply.
Distance helps, too. The Close reported that the data firm Cotality flagged rising occupancy alerts in early 2026, including second-home claims within 25 miles of a buyer's current home, and Hocking Hills sits 60 to 75 minutes from Columbus.
What you promise when you sign a second-home loan
The commitment doesn't end at closing. Second-home loans sold to Fannie Mae or Freddie Mac include a Second Home Rider, a page attached to your mortgage that spells out how you'll use the property.
Under the current version, you agree to keep exclusive control over occupancy, including short-term rentals, to stay out of rental pools and any agreement that gives a management firm control over who stays there, and to keep the home available primarily for your own use for at least a year unless your lender agrees otherwise in writing.
The rider allows renting as long as you control who stays and when. If a management company decides who books your cabin, expect your lender to classify it as an investment property, even if you'll spend plenty of weekends there yourself.
Show any management agreement to your loan officer early. It's far easier to settle during pre-approval than three weeks before closing.
Decide how the calendar will work first, because the calendar decides the loan.
What each label means for your down payment and rate
The biggest difference shows up at closing. Fannie Mae's eligibility matrix allows a one-unit second home purchase at up to 90 percent loan-to-value, which means as little as 10 percent down. A one-unit investment property tops out at 85 percent, so you need at least 15 percent down.
On pricing, Fannie Mae's loan-level price adjustment grid charges second homes and investment properties the same adjustment at the same loan-to-value: 2.125 percent of the loan at 70 to 75 percent, 3.375 percent at 75 to 80 percent, and 4.125 percent above that.
That's the math behind putting 25 percent down instead of 20. On a $400,000 loan, dropping into the lower tier cuts the adjustment by $5,000, which lenders usually build into your rate or charge as points. Credit scores add their own adjustments, so get written quotes on both scenarios.
Short-term rental income can now help you qualify
In September 2026, Fannie Mae added rules that let lenders count short-term rental income from the property you're buying. They apply only to one-unit investment properties, so a second-home loan can't use them.
The property must be legally permitted for short-term rentals, including local registration and licensing. On a purchase, the lender estimates income from a standard rent schedule, three comparable short-term rentals in the MLS, or property management companies, then counts 50 percent of that gross rent before subtracting your monthly payment.
As an illustration, say three comparable cabins average $300 a night across 180 booked nights a year. That's $4,500 a month; the lender counts $2,250, and with a $3,000 payment, the $750 shortfall goes into your debt-to-income ratio.
Legal permission depends on where the cabin sits. Inside Logan city limits, rentals need a city license, with a $50 application fee plus $500 a year and a cap of 60 active licenses in the R-2 districts.
Outside the city, every rental has to register for the county's 6 percent lodging tax.
The county's draft short-term rental ordinance would add an annual $50 permit, an inspection, $1 million in liability coverage, and proof of health department compliance. It's still a draft, but septic capacity, the water source, and year-round access matter even more when the plan is a short-term rental.
The IRS counts days, not loan paperwork
Under IRS Topic 415, a home counts as a residence if your personal use exceeds the greater of 14 days or 10 percent of the days it's rented at a fair price. A special rule covers homes rented fewer than 15 days a year, and mixed-use homes generally split expenses by days.
I'm not a CPA, so have this conversation with one before you close, especially if you'll spend more than two weeks a year at the cabin.
Second home vs investment property at a glance
How you use it
Second home — You occupy it part of the year and control it
Investment property — You own it but don't live in it
Minimum down payment (Fannie Mae, one unit)
Second home — 10 percent
Investment property — 15 percent
Rental income used to qualify
Second home — Not allowed
Investment property — Allowed, including short-term rental income since September 2026
Management company controlling occupancy
Second home — Not allowed
Investment property — Allowed
Fannie Mae upfront price adjustment
Second home — Same grid as investment at the same loan-to-value
Investment property — Same grid as second home at the same loan-to-value
Units allowed
Second home — One unit only
Investment property — One to four units
Hocking County lodging tax when rented
Second home — 6 percent
Investment property — 6 percent
Lenders can layer their own rules on top of Fannie Mae's, so treat this as the baseline and confirm the details with your loan officer.
Which one fits your Hocking Hills cabin
Finance it as a second home when:
You'll use the cabin yourself regularly through the year
You'll keep the booking calendar in your own hands
You don't need rental income to qualify
Think of a family cabin you visit most months, with a few rental weekends in peak season.
Finance it as an investment property when:
Rental income is the main reason you're buying
A management company will run the bookings
You need projected rental income to qualify
Turnkey options like the nine furnished cabins in The Wilderness Collection can fit this path. Hocking Hills draws more than 4 million visitors a year, though visitor numbers have leveled off since the pandemic, so before you fall for the view, weigh the cabin's distance from the major attractions, its operating costs, and realistic revenue.
Whichever label you choose, make sure it matches your real plan. A lender that finds occupancy was misrepresented can call the loan due or re-underwrite it on less favorable terms.
Talk through your cabin plan before you call a lender
If you're deciding between a weekend cabin and a rental, we'll walk through the rules, the realistic revenue, and the property itself with you.
Talk through your cabin plan with us
You can also browse Hocking Hills real estate or download our Ultimate Guide to Hocking Hills Real Estate.
Frequently Asked Questions
Can I rent out my second home?
Yes, occasionally. Fannie Mae allows rental income on a second home as long as it isn't used to qualify, you occupy the home part of the year, and no management company controls its occupancy.
How much do I need down for a vacation home loan?
Under Fannie Mae's eligibility matrix, a one-unit second home can be financed with as little as 10 percent down, and a one-unit investment property needs at least 15 percent. Larger down payments lower Fannie Mae's upfront price adjustment, from 4.125 percent above 80 percent loan-to-value to 2.125 percent at 70 to 75 percent.
Can short-term rental income help me qualify for a cabin loan?
On a one-unit investment property, yes. Since September 2026, Fannie Mae has let lenders estimate income from comparable short-term rentals and count 50 percent of it, as long as the property is legally allowed to operate as a rental.
Can I use a property manager with a second home loan?
A second home can't be subject to any agreement that gives a management firm control over who stays there and when. If a company will control your booking calendar, expect your lender to treat the cabin as an investment property.
What is the 14-day rule for vacation homes?
The IRS treats a vacation home as a residence if your personal use is more than the greater of 14 days or 10 percent of the days it's rented at a fair price. If you rent it fewer than 15 days a year, a special rule applies to that rental income.
Do I need a permit to rent my Hocking Hills cabin?
Inside Logan city limits, you need a city short-term rental license. In the rest of Hocking County there's no county permit yet, but every rental has to register for the 6 percent lodging tax, and a countywide permit ordinance is still in draft.
